Basic Program on Reducing Administrative Burden: …...(accounting for annual 83.47 million cases)), ministries and agencies interviewed businesses on administrative costs (number

Basic Program on Reducing Administrative Burden:

Review results and future policies

April 24, 2018

Subcommittee for Administrative Burden Reduction

Council for Promotion of Regulatory Reform

－ Index －

I. Past discussions・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P1

II. Measurement results of administrative costs and the prospect of reduction・・・・・・・ P3

III. Review results of basic implementing plans・・・・・・・・・・・・・・・・・・・P7

1. Procedures for business approvals and licenses

2. Procedures for social insurance

3. Procedures for national taxes / 4. Procedures for local taxes

5. Procedures for subsidies

6. Providing responses to statistical studies and other surveys

7. Procedures for labor management of corporate members

8. Procedures for commercial registrations

9. Issuance of certificates as the request of corporate members (employment certificates)

10. Procedures for submitting a bid to or entering into a contract with an administrative

ministry or agency

IV. Cross-sectional efforts・・・・・・・・・・・・・・・・・・・・・・・・・・・・P37

1. Three Principles for Administrative Burden Reduction

2. Simplification of identity verification procedures from the user’s perspective

3. Cross-ministerial efforts for “Once-Only” procedures

4. Towards realization of “Digital First” procedures (complete computerization of

administrative procedures)

5. Elimination of unique operation rules of each local agency of the Government (so-called

local rules)

V. Simplification of local procedures・・・・・・・・・・・・・・・・・・・・・・・・P42

1. Importance of administrative cost reduction by local governments

2. Discussions at the Council on Economic and Fiscal Policy

3. Uniform documentary forms at local governments

4. Promotion of efforts by local governments

VI. Future efforts・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・P45

1. Check and review

2. Roll-out to local governments

3. Further simplification from the perspectives of “workstyle reform” and

“productivity improvement”

1

I. Past discussions

1. Background

Japan is one of the first countries in the world to face a dramatic decline in population. To achieve

sustained growth, it is essential to overcome the constraints of economic supply by boosting the

country’s productivity.

In order to achieve the government’s published goal of “600 trillion yen GDP economy”, it is

necessary to improve the country’s business environment and to boost their productivity by reducing

the administrative burden encountered by businesses.

2. Efforts in FY2016

In the Japan Revitalization Strategy 2016, approved by the Cabinet on June 2, 2016, the Government

stated that it would conduct surveys on foreign countries’ efforts for administrative burden reduction,

consider how costs should be reduced and goals should be set up, and then decide on focused areas

where the Government should promote regulatory reforms, simplification of administrative

procedures, and evolution of information technology in an integrated and unified manner on a full-

scale basis, as well as on goals of regulatory/administrative cost reduction, and promote systematic

efforts by the end of FY2016.

Based on the above decision, the Government established the “Subcommittee for Administrative

Burden Reduction” within the Council for Promotion of Regulatory Reform, where they discussed

on specific steps toward reduction of administrative costs in Japan. During the discussions, the

Subcommittee reviewed foreign countries’ efforts for administrative cost reduction according to the

decision presented in the Japan Revitalization Strategy, and gained valuable insights from them. In

doing so, the focus was placed on understanding the needs of businesses regarding administrative

burdens. Specifically, the Subcommittee conducted a questionnaire survey of businesses, thereby

understanding quantitative trends on procedures that were the most burdensome to businesses and

how they actually felt, and collected case examples of problematic procedures as well by

interviewing various organizations and soliciting opinions through the Cabinet Office’s website.

Based on such discussions and review results, the following summary of administrative burden

reduction measures was adopted in the meeting of the Council for Promotion of Regulatory Reform

held on March 29, 2017, in the presence of Prime Minister Abe, heads of the three economic

organizations (Keidanren (Japan Business Federation), The Japan Chamber of Commerce and

Industry, and Japan Association of Corporate Executives).

・Efforts should be promoted based on the three principles for administrative burden reduction: 1)

2

Pursuit of Thoroughness in Computerization of Administrative Procedure (Digital First Principle),

Same Information Not Required(Once-Only Principle), and 3) Uniform Documentary Forms.

・The following nine areas have been prioritized:

i. Procedures for business approvals and licenses, ii. Procedures for social insurance, iii.

Procedures for national taxes, iv. Procedures for local taxes, v. Procedures for subsidies, vi.

Providing responses to statistical studies and other surveys, vii. Procedures for labor

management of corporate members, viii. Procedures for commercial registrations, ix. Issuance

of certificates as the request of corporate members

*Both “Administrative burden about procedures for employees’ tax payment” and “Procedures

for submitting a bid to or entering into a contract with an administrative ministry or agency”

are to be considered separately.

・Administrative costs (number of hours spent within businesses to complete procedures) in the

prioritized areas should be reduced by 20% in the three year working period leading up to the year

2020 (except for some items on which reduction should be achieved in five years).

*Separate numerical targets to be established for “Procedures for national taxes” and “Procedures

for local taxes” such as 100% utilization rate of electronic filing by large corporations

*“Providing responses to statistical studies and other surveys” to be dealt with based on the Basic

Policy for the Fundamental Reform of Economic Statistics

Based on the report, Prime Minister Abe stated in the said meeting that the Government would aim

to achieve 20% or more reduction of administrative costs in areas including business approvals and

licenses which were heavily burdensome to businesses by 2020, the year of the Tokyo Olympics and

Paralympics, and that he would order that ministries and agencies formulate and announce reduction

plans by June 2017.

3. Efforts in FY2017

Based on the above report and Prime Minister’s order, ministries and agencies formulated and

released “basic implementing plans” for reducing administrative costs of each area by the end of

June 2017. To check and follow up on the basic implementing plans formulated by ministries and

agencies, the Subcommittee for Administrative Burden Reduction established two Review Teams at

the end of August last year. They conducted intensive inspections on the basic implementing plans

(by meeting 22 times in seven months), and ministries and agencies revised the basic implementing

plans accordingly by March this year.

To be more specific, the Subcommittee presented a basic approach for revision of the basic

implementing plans to help best practices of a ministry or agency in each prioritized area to be rolled

out to other ministries and agencies, and also requested that ministries and agencies simplify specific

3

procedures on which businesses strongly demanded improvement.

As well, the Subcommittee pushed efforts in areas and items which have a huge impact on small and

medium-sized enterprises amid a call for elimination of labor shortage at SMEs and restrictions on

long working hours. Specifically, the Subcommittee put together simplification schedules for the

areas including social insurance, subsidies, and identity verification at the second meeting of the

Liaison Council for SME-Revitalization-related Ministries and Agencies (January 11, 2018).

In addition, “Supply System Innovation from the government” was announced as a basic policy in

the “New Economic Policy Package” (December 8, 2017), and “100% computerization of

administration services” and “elimination of attached documents” among others were adopted by

the IT Strategic Headquarters (December 2017) and e-Government Ministerial Conference (January

16, 2018). As well, at the meeting of the Council on Investments for the Future (March 30, 2018),

Prime Minister Abe stated, “In strongly advancing the productivity revolution, let us first ‘practice

what we preach.’ Government organizations must proactively make use of the latest technology and

work to thoroughly improve productivity themselves.” Based on the series of such developments,

the Subcommittee focused its efforts especially on computerization.

II. Measurement results of administrative costs and the prospect of reduction

This became the first-ever attempt to quantify administrative costs in Japan. It would make it

possible to quantitatively verify reduction effects.

(1) Ministries and agencies formulated basic implementing plans for simplification of procedures

which processed 100 cases or more a year in each prioritized area based on the aforementioned

decision by the Council for Promotion of Regulatory Reform. (99.6% coverage based on the

number of cases procedures process per year)

(2) With regard to major procedures (530 procedures (accounting for annual 75.23 million cases))

among procedures for which basic implementing plans were formulated (1,223 procedures

(accounting for annual 83.47 million cases)), ministries and agencies interviewed businesses on

administrative costs (number of hours spent within businesses to complete procedures) required

for filing, etc., and thereby measuring costs (costs before reduction measures included in the basic

implementing plans were taken) (90% coverage based on the number of cases procedures process

per year). As well, ministries and agencies presented the prospect of cost reduction effects if the

reduction measures were taken.

(3) According to the cost measurement results, administrative costs borne by businesses in prioritized

areas amounted to 347.27 million hours per year at the time of the survey. Multiplied by an hourly

4

labor cost (2,543 yen) including wages, bonuses, and welfare expenses which was calculated

statistically, the administrative costs are estimated to be 883.1 billion yen in monetary terms.

* Multiplied by a labor cost per person: 2,543 yen/hour (employee wages: 1,874 yen/hour, employee bonuses:

325 yen/hour, welfare expenses: 345 yen/hour), the administrative costs in terms of hours were converted

into a monetary amount. The labor cost per person per year (4,373,173 yen) was obtained by applying the

formula: “(Employee wages + Employee bonuses + Welfare expenses) / Number of employees” to data (of

all industries including finance and insurance) found in the Financial Statements Statistics of Corporations

by Industry (FY2016). The hourly cost was calculated by dividing 4,373,173 yen by the total hours worked

in FY2016 (1,719.6 hours) obtained from the monthly labor statistics survey. The same applies to the

following monetary conversion of hours reduced.

(4) Effects of cost reduction by efforts of this time are estimated to be 77 million hours (195.8 billion

yen) per year by aggregating expected cost reduction effects for each item of all ministries and

agencies. (Reduction rate: 22.2%) As a one-time reduction of administrative costs would bring

perpetual effects, Japan’s business environment is expected to improve significantly when

administrative costs have been reduced.

5

Table 1. Administrative costs and prospect of hours reduced by area

*1 If ministries or agencies did not set a target for each procedure in their basic implementing plans, “Hours

reduced” shows an aggregate of “Hours spent” of such procedures in each area multiplied by the reduction

rate of 20%.

*2 Some procedures regarding “Business approvals and licenses” which have not been measured are not

included in hours spent, hours reduced, or reduction rate of this table. (They account for around 40,000

cases.)

*3 “Statistical studies and other surveys” includes existing statistical surveys (Fundamental Statistical Surveys

and General Statistical Surveys) but not surveys that were newly started or improved based on the “Basic

policy for statistical reform” or non-statistical surveys. The “Total number of cases processed” in this area

includes numbers (approximate numbers) per year converted from the number of survey subjects in the

basic implementing plans. (E.g., The number of survey subjects is multiplied by four, if the survey is

quarterly, and divided by five, if the survey is conducted every five years.)

*4 “Subsidies” covers only “Subsidies” defined in Article 2 (1) of the Act on Regulation of Execution of

Budget Pertaining to Subsidies, etc. (Act No. 179 of 1955). Employment subsidies are included in “Labor

management.”

*5 Calculated based on the number of children using day care facilities, etc. It shows a maximum because not

all children are approved on the ground that their parents are employed.

*6 Hours spent on “Commercial registrations” were converted from the average number of days spent

Hours spent per

case

Total number of cases

processed

(Subject to cost

measurement)

Hours spent

(Monetary terms)

Hours reduced*1

(Monetary terms)

Reduction

rate

Business

approvals and

licenses

26.9 hours 5,253,226 cases 141.24 million hours*2

(359.2 billion yen)

29.50 million hours*2

(75.0 billion yen ) 20.9%

Social

insurance 2.1 hours 56,806,812 cases

122.11 million hours

(310.5 billion yen)

29.22 million hours

(74.3 billion yen) 23.9%

Statistical

studies and

other

surveys*3

3.5 hours 6,811,452 cases 23.93 million hours

(60.9 billion yen)

5.62 million hours


Labor

management 5.0 hours 3,013,296 cases

15.14 million hours

(38.5 billion yen)

3.06 million hours


Subsidies*4 37.6 hours 292,598 cases 11.00 million hours

(28.0 billion yen)

2.30 million hours


Employment

certificates 2.3 hours 2,460,000 cases*5

5.56 million hours

(14.1 billion yen)

1.64 million hours


Commercial

registrations*6 47.5 hours 595,272 cases

28.28 million hours

(82.1 billion yen)

5.65 million hours

(16.4 billion yen ) 20.0%

Total 4.6 hours 75,232,656 cases 347.27 million hours

(883.1 billion yen)

77.00 million hours


6

measured by the Ministry of Justice because it was the only available data. Conversion to hours spent were

made by assuming that 6.6 hours were spent per day based on the data gained from the monthly labor

statistics survey.

7

III. Review results of basic implementing plans

The Subcommittee presented a basic approach for revision of the basic implementing plans

formulated by ministries and agencies in June last year for each prioritized area to extract best

practices of each ministry and agency based on the three principles for administrative burden

reduction (Digital First Principle, Once-Only Pricciple, and Uniform Documentary Forms) and to

help such best practices to be rolled out to other ministries and agencies, and then called for

improvement. As well, the Subcommittee requested that ministries and agencies simplify specific

procedures on which businesses strongly demanded improvement. In addition, the Subcommittee

put together schedules which specified leading ministries and agencies and deadlines.

Apart from the conventional nine prioritized areas, the Subcommittee set a target of 20% reduction

of administrative costs in procedures concerning “Procedures for submitting a bid to or entering into

a contract with an administrative ministry or agency” on which SMEs strongly demanded

simplification.

1. Procedures for business approvals and licenses (1) The Subcommittee established “perspectives of simplification and evaluation criteria” according

to the above three principles, conducted inspections for overall improvement through efforts in

coordination with “Digital Government Execution Plan” (elimination of attached documents,

revision of use of a seal) and simplification efforts initiated by ministries and agencies, and called

for revision accordingly.

(2) The Table 2 summarizes the current state and efforts included in the basic implementing plans of

each ministry and agency from the perspective of “computerization” that is the most important

measure for simplification of administrative procedures. Generally, the current state can be

described as follows:

・Some ministries and agencies have no procedures that allow online filing.

・In many procedures, online filing is available but not widely used.

(3) The basic implementing plans confirmed advanced and proactive efforts in some ministries and

agencies and in some procedures but not all.

For example,

・Some wrote in their basic implementing plans that they would identify the reasons why

online filing was not widely used or would analyze factors that were preventing

introduction of an online filing system. Some said they would make their online filing

system easier to use to increase online users.

・Some wrote specific plans toward elimination of attached documents through backyard

cooperation.

8

・Some ministries and agencies were working to introduce a nationally-standardized filing

system for procedures of local governments while others only made requests to local

governments.

9

Table 2. Efforts for computerization of procedures for Business approvals and licenses

No. of

target

procedures

No. of

cases

processed

online /

Total

number of

cases

processed

Online

procedure

rate

○Major laws

・Examples of efforts concerning computerization in

basic implementing plans

National Police

Agency (NPA)

(7 relevant laws)

68 0/

818,012 0.0%

○Act on Control and Improvement of Amusement

Business, etc. ○Secondhand Articles Dealer Act

・Consider introduction of electronic filing for new

notification procedures, etc. to be established by the

Revised Secondhand Articles Dealer Act (enacted on

April 2018) if the Revised Act is passed.

Financial

Servicies Agency

(FSA)

(13 relevant laws)

93 20,701/

98,844 20.9%

○Financial Instruments and Exchange Act ○Banking

Act

・Promote online procedures that are available but not

widely used.

・Examine procedures where online filing is not

available to identify factors preventing introduction

of an online filing system, determine if online filing

is possible or not for each procedure, and then, for

procedures which could allow online filing, proceed

with the required preparation to make online filing

available by the end of 2019.

Ministry of

Internal Affairs

and

Communications

(MIC)

(2 relevant laws)

13 340/

8,522 4.0%

○Radio Act ○Broadcasting Act

・Hold hearings concerning promotion of online

filing/notification systems and details of required

work, and thereby promoting greater utilization

・Unify entry formats for online and paper

filing/notification to promote online filing

Ministry of

Justice

(MOJ)

(4 relevant laws)

8 0/

1,617 0.0%

○Act on Special Measures Concerning Claim

Management and Collection Businesses

・Make it possible to substitute sending information

through the registry information service for sending

an original copy of a certificate of registered matters

Ministry of

Finance

(MOF)

(3 relevant laws)

16 1,018/

58,405 1.7%

○Tobacco Business Act ○Liquor Tax Act

・Consider elimination of the requirement of attaching

a certificate of registered matters and a copy of a

family register

Ministry of

Education,

Culture, Sports,

Science and

Technology

7 0/

4,114 0.0%

○Education Personnel Certification Act ○School

Education Act

・Develop/operate a new web input system as some

operations are transferred to independent

10

(MEXT)

(2 relevant laws)

administrative agencies (Education Personnel

Certification Act)

Ministry of

Health, Labour

and Welfare

(MHLW)

(29 relevant laws)

273 121/

2,475,360 0.0%

○Food Sanitation Act ○Long-Term Care Insurance Act

○The Law on Securing Quality, Efficacy and Safety of

Products Including Pharmaceuticals and Medical

devices

・Develop a nationally-standardized online filing

system for business permit application for

restaurants, etc.

・Request local governments to promote filing by

sending data by email or in CD-R as a measure that

can be readily implemented.

Ministry of

Agriculture,

Forestry and

Fisheries

(MAFF)

(11 relevant laws)

22 0/

136,701 0.0%

○Fishery Act

・Consider online filing and other digital services by

working with the National Strategy Office of

Information and Communications Technology,

Cabinet Secretariat.

・Promote online procedures by providing pre-filing

consultation by email and accepting submission by

email

11

Ministry of

Economy, Trade

and Industry

(METI)

(32 relevant laws)

133 751,389/

1,307,559 57.5%

○Feed-in-Tariff Act ○Electricity Business Act ○Act for

Facilitating New Business Activities of Small and Medium-

sized Enterprises

・Apply online filing to more procedures, and enhance

procedural efficiency by preventing incomplete data and

allowing correction on online systems. (Feed-in-Tariff

Act)

・Examine the possibility of IT introduction to all

procedures required by security-related laws, and simplify

procedures and apply IT on the condition that security is

ensured (Electricity Business Act, etc.)

・Work to achieve a system which enables online filing

based on a simple authentication method (ID/Password)

without an electronic certificate (Act for Facilitating New

Business Activities of Small and Medium-sized

Enterprises)

Ministry of Land,

Infrastructure,

Transport and

Tourism

(MLIT)

(27 relevant laws)

142 8,424/

1,569,940 0.5%

○Construction Business Act ○Motor Truck Transportation

Business Act ○Act on Assurance of Performance of

Specified Housing Defect Warranty

・Discuss simplification of filing documents, etc. including

the aspects of how online filing should be or how false

filing should be dealt with. Conduct questionnaire surveys

of construction firms and licensing agencies and consider

system development with the FY2018 budget.

(Construction Business Act)

・Consider computerization of procedures and start

introducing it to procedures as they become ready (Motor

Truck Transportation Business Act)

Ministry of the

Environment

(MOE)

(2 relevant laws)

11 0/

40,122 0.0%

○Waste Management and Public Cleansing Act

・Ask relevant parties including discharge enterprises,

disposal companies, and local governments what they

think is a problem and then consider online filing, etc.

(FY2018)

(4) With regard to “computerization of filing forms,” the Subcommittee also classified and tabulated

each ministry and agency’s policy as in Table 3. In general, for most procedures, ministries and

agencies expressed their intentions to “work toward” or “consider” computerization. But while

there is a considerable number of procedures for which “Development of an online entry form is

planned (A),” for many procedures, ministries and agencies only plan “Provision of a filing form

on an editable file format (Word, Excel, etc.) (B).”

As well, the Subcommittee classified and tabulated each ministry and agency’s policy as in Table

4 with regard to “computerization of submission methods.” It revealed that cases where

“development of a system for online submission of filing forms is completed or under consideration

(A)” cover only 13% of the total number of cases processed while “filing by mail (B)” and “filing

in person at a service counter only (C)” account for 82% and 1% respectively.

12

Table 3. Efforts for computerization of filing forms (Business approvals and licenses)

A: Development of an online

entry form available on

websites is concretely planned

(or already completed.)

B: Provision of a filing form on

an editable file format (Word,

Excel, etc.) on websites is

concretely planned (or already

underway.)

C: Filing forms are provided only

on paper at service counters or

on uneditable file formats

(PDF, etc.) on websites. No

plans for revision.

NPA 0 item 0 case 68 items 818,012 cases 0 item 0 case

FSA 0 item 0 case 93 items 98,844 cases 0 item 0 case

MIC 6 items 3,774 cases 7 items 4,748 cases 0 item 0 case

MOJ 0 item 0 case 8 items 1,617 cases 0 item 0 case

MOF 6 items 26,729 cases 10 item 31,676 cases 0 item 0 case

MEXT 6 items 3,077 cases 1 item 1,037 cases 0 item 0 case

MHLW 30 items 903,905 cases 233 items 1,477,510

cases 11 items 93,954 cases

MAFF 0 item 0 case 20 items 136,214 cases 0 item 0 case

METI 45 items 1,160,730

cases 86 items 146,292 cases 3 items 537 cases

MLIT 12 items 53,518 cases 107 items 1,497,737


MOE 0 item 0 case 11 items 40,122 cases 0 item 0 case

Table 4. Efforts for computerization of submission methods of filing forms (Business approvals and

licenses)

A: Development of an online

form and an online system for

completing submission/

acceptance of filing forms

(including attached

documents) is planned (or

already completed.)(*1)

B: Acceptance of filing

forms/attached documents by

mail is planned (or already

available.)(*2)

C: Application forms/attached

documents can only be

submitted in person at a

service counter.

NPA 0 item 0 case 68 items 818,012 cases 0 item 0 case

FSA 93 items 98,844 cases 0 item 0 case 0 item 0 case

MIC 6 items 3,774 cases 7 items 4,748 cases 0 item 0 case

MOJ 2 items 383 cases 6 items 1,234 cases 0 item 0 case

MOF 7 items 28,805 cases 9 items 29,600 cases 0 item 0 case

MEXT 3 items 1,127 cases 4 items 2,987 cases 0 item 0 case

MHLW 47 items 970,635 cases 217 items 1,474,818


MAFF 2 items 848 cases 19 items 135,537 cases 1 item 316 cases

METI 56 items 1,244,635

cases 75 items 62,587 cases 3 items 537 cases

MLIT 42 items 959,323 cases 99 items 610,469 cases 1 item 148 cases

13

MOE 0 item 0 case 11 items 40,122 cases 0 item 0 case

*1 Submission by email is included. *2 Submission of CD or DVD by mail is included in B. *3 Table 3 and Table 4 summarize efforts presented in basic implementing plans.

(5) Computerization of procedures, especially those that process many cases a year, could not only

reduce administrative costs on businesses but also be beneficial for the administration side as they

will be able to handle a large amount of data easily at a lower cost.

The Table 5 summarizes procedures for business approvals and licenses which handle more than

100,000 cases a year. In some of these procedures, online filing is already available and used

popularly while in other procedures, an online filing system has yet to be introduced even on the

central government level. As well, while revision of procedures that are legally considered as

affairs of local governments must be promoted with understanding and cooperation of local

governments, in some cases a ministry or agency works to develop a nationally standardized

system on its own. (Food Sanitation Act) (See “V. Simplification of local procedures” (P. 42-).)

In addition, utilization of email was reported in the areas such as “Notification of

suspension/discontinuation of a pharmacy” and “Permission for fishery.” It is only a first step

toward computerization and further efforts are needed.

Table 5. Efforts for computerization of procedures that process more than 100,000 cases a year

(Business approvals and licenses) [NPA]

Procedure No. of

cases/year

Efforts for computerization

*Created by Secretariat based on basic implementing plans and

Subcommittee hearings

Filing for approval of addition,

replacement, and other changes of

game machines (Act on Control

and Improvement of Amusement

Business, etc.)

395,678

☆Local government affairs

・Analyze factors preventing introduction/promotion of online filing

(FY2018)

・ Discuss simplification, etc. of notification methods including

promotion of online filing introduction (FY2019)

Notification of minor change of

game machines (Act on Control

and Improvement of

Amusement Business, etc.)

127,306

14

[MHLW]

Filing for a business approval for

restaurants, etc. (Food Sanitation

Act)

303,154


・Develop an online system for business approval filing, etc. and

promote introduction of online services to filing procedures, etc.

・Start system development from FY2018, and finish it in FY2019, and

then start integration tests with systems of local governments from

the second half of FY2019.

・ Promote standardization of filing forms by setting required

information for filing on an online system based on facility criteria

specified by the central government.

Filing for renewal of a business

approval for restaurants, etc.

(Food Sanitation Act)

274,911

Notification of change of

information submitted upon filing

for a business approval for

restaurants, etc. (Food Sanitation

Act)

213,252

Notification of change of an

operator of a welfare service

business for persons with

disabilities (Comprehensive

Services and Supports for Persons

with Disabilities Act)

142,274


・Promote efforts by asking for understanding of local governments on

the introduction of an online filing system while keeping pace with the

progress in other areas.

Notification of

suspension/discontinuation of a

pharmacy (The Law on

Securing Quality, Efficacy and

Safety of Products Including

Pharmaceuticals and Medical

devices)

133,675


・Based on the prospect of the government-wide computerization effort

of administrative procedures, as an immediately practicable effort,

ask for cooperation of local governments in promotion of procedures

utilizing electronic media e.g., accepting data by email or in CD-R if

many documents which do not require seals need to be attached.

[MAFF]

Prefectural governor’s permission

for fishery (Fishery Act) 111,410


・Consider computerization including the introduction of online filing

in consultation with the National Strategy Office of Information and

Communications Technology, Cabinet Secretariat based on the latest

government policies and decisions including the “ Digital

Government Execution Plan.”

・ Ask for understanding and cooperation of prefectures on the

following efforts:

1) Discuss and determine if seals can be omitted in documents. If

they can, simplify relevant procedures and publicize them on

websites.

2) Discuss and determine if simplification of attached documents is

possible. If it is, simplify relevant procedures and publicize them

on websites.

3) Promote computerization of procedures by providing pre-filing

consultation by email and accepting submission by email.

15

[METI]

Approval of a renewable energy

generation business plan (Feed-in-

Tariff Act)

275,528 ・Online filing has been introduced. (Online filing rate: 97.6%)

Prior/post notification of change

of a renewable energy generation

business plan (Feed-in-Tariff Act)


Inspection of electric meters fitted

with a current transformer

(Measurement Act)


Notification of safety regulations

for electric facilities for business

use (Electricity Business Act)

116,297

・Simplify procedures and introduce IT on the condition that safety is

ensured

・Develop an online filing system during the FY2018 and aim to make

it available for use from FY2019.

[MLIT]

Statement of accounts

(Construction Business Act) 443,051

☆Local government affairs (Partial)

・Discuss simplification of application documents, etc. including the

aspects of how online application should be or how false application

should be dealt with. (Study and discuss the matter with the FY2018

budget.)

Construction business license

(Construction Business Act) 135,586

Notification of change of a

construction business license 103,003

Notification of change of a

business plan of general motor

truck transportation business

(Motor Truck Transportation

Business Act)

182,594

・The notification form is available on an editable file format.

・Discuss computerization of procedures and start digitalizing them as

they become ready. (Started from FY2017)

Notification of a deposit by a

construction firm for a guarantee

against housing defects (Act on

Assurance of Performance of

Specified Housing Defect

Warranty)

114,455

☆Local government affairs (Partial)

・The notification form is available on an editable file format.

・Find out actual conditions by conducting questionnaire surveys of

businesses and government ministries and agencies, discuss system

development and attached documents, and plan to take necessary

measures while coordinating with ministries and agencies in FY2018

(Also pay attention to efforts in other related systems)

(6) Without being obsessed with costs of system introduction or business flow revision that are to be

borne by ministries and agencies, leaders of the relevant bureau of each ministry and agency should

become more proactive and make responsible inspection by themselves to achieve “complete

computerization of administrative procedures.” Only after that, ministries and agencies should

include proactive measures in their mid to long-term plans concerning Digital Government that are

expected to be put together by the first half of this year. The Subcommittee also wants to ask the

National Strategy Office of Information and Communications Technology, Cabinet Secretariat to

provide technical assistance to ministries and agencies. Meanwhile, the Subcommittee will

continue to evaluate the state of progress regarding items to be inspected and examined the next

16

fiscal year.

(7) The Subcommittee also discussed simplification of procedures for business approvals and licenses

from the perspectives of “elimination of attached documents,” “release of examination

criteria/standard processing time,” “local rules,” and “Once Only” apart from computerization. As

many procedures are being revised or scheduled to be revised from these perspectives, it is

necessary to continue to evaluate specific efforts. For example, some businesses pointed out that

there is redundancy in matters to be reported between the central and local governments when

reporting based on the Act on the Rational Use of Energy (Energy Saving Act), the Act on

Promotion of Global Warming Countermeasures, and regulations for global warming prevention.

Based on this, measures to reduce a burden should be discussed, including introduction of an

electronically-writable standard form in a format which can be utilized by various local

governments by taking the idea from efforts on “9. Issuance of certificates as the request of

corporate members (employment certificates).” (Conclusion to be reached by June this year.)

17

2. Procedures for social insurance

To achieve the state where corporations do not have to submit similar documents as a rule, efforts

should be made in (1) making it compulsory for large corporations to file online, (2) discontinuing

procedures by utilizing Individual Number, (3) eliminating the requirements of employees’

seals/signatures, and (4) realizing “One-Stop/Once-Only” procedures.

(1) Large corporations (corporations, etc. with a capital or investment of 100 million yen or more) will

be required to use electronic filing from FY2020 or the business year starting on or after April 1,

2020. The same applies to licensed social insurance consultants or corporations of licensed social

insurance consultants taking procedures on behalf of large corporations.

Table 6. Procedures subject to mandatory electronic filing

Type of social

insurance

Type of notification, etc. Number of cases

processed per year

(*)

Employees' Pension

Insurance

Notification of Bonus Payment to Insured 1,772,247

Notification of Base Amount for Calculation of Monthly Income of

Insured

1,879,196

Notification of Base Amount for Calculation/Change of Monthly

Income/Bonus Payment for Insured Aged 70 or Older

553,368

Notification of Change of Monthly Income of Insured under

Employee’s Pension

976,236

Health Insurance

Notification of Bonus Payment to Insured 4,783,863

Notification of Base Amount for Calculation of Monthly Income of

Insured

2,409,350

Notification of Change of Monthly Income of Insured under Health

Insurance

526,711

Labor Insurance

Tax Return for Estimated Insurance Premium/Increased Estimated

Insurance Premium/Fixed Insurance Premium for Labor Insurance

Report of General Contributions under Act on Asbestos Health

Damage Relief

1,930,033

Employment Insurance

Notification of Acquisition of Insured Status under Employment

Insurance

9,096,772

Notification of Loss of Insured Status of Insured under Employment

Insurance

7,541,021

Notification of Transfer of Insured under Employment Insurance 586,525

Application for Provision of Continuous Employment Benefits for

Elderly

4,442,559

Application for Provision of Childcare Leave Benefits 1,985,968

* Number of cases processed per year includes the number of cases processed for businesses that would not be subject to

mandatory electronic filing.

18

(2) With regard to procedures concerning employees, the Government will work towards (a) omission

of notification of change of address, etc. by utilizing the Individual Number system and (b)

realization of procedures which allow the use of Individual Number in addition to Basic Pension

Number. As well, the Government will (c) achieve greater convenience by improving the

operability of online filing systems and office functions and make online procedures available for

small and mid-sized enterprises while revising identity verification procedures. (See “IV. Cross-

sectional efforts” (P. 37-).)

Table 7. Omission of procedures of address change ((2)-(a))

Efforts led

by: Efforts

Period of

efforts Effects of efforts

MHLW

・Develop related laws at MHLW towards

omission of notification of change of

address and name by using the Individual

Number system

・Advance the project of registering

Individual Numbers at Japan Pension

Service (JPS) and associate Basic Pension

Numbers and Individual Numbers

・Upgrade relevant systems and develop

office work flows at JPS for omission of

notification of change of address and

name by using the Individual Number

system

・Implement omission of notification of

change of address and name by using the

Individual Number system at JPS

FY2017

Notification from business

establishments will no longer be

required. (Notification of change of

name: approx.. 370,000 cases;

Notification of change of address:

approx. 1.28 million cases)

*Notification can be omitted starting

from March 5, 2018 for the insured

whose Individual Number and Basic

Pension Number have been linked to

each other.

19

Table 8. Realization of procedures which allow the use of Individual Number in addition to Basic

Pension Number ((2)-(b))

Efforts led

by: Efforts

Period of


MHLW

・Develop related laws at MHLW towards

realization of procedures using Individual

Number in addition to procedures using

Basic Pension Number

・Advance the project of registering

Individual Numbers at JPS and associate

Basic Pension Numbers and Individual

Numbers

・Upgrade relevant systems and develop

office work flows at JPS for realization of

procedures using Individual Number in

addition to procedures using Basic

Pension Number

・Implement procedures using Individual

Number in addition to procedures using

Basic Pension Number at JPS

FY2017

Business operators will no longer need to

keep employees’ pension handbooks.

*In reality, many business operators keep

employees’ pension handbooks so that

they could refer to the handbooks for

employees’ Basic Pension Numbers

when they take a procedure for

employees.

*Even if business operators take a

procedure with Individual Number, JPS

will send them a notice with Basic

Pension Number printed on it. Following

procedures can be taken with Basic

Pension Number as well.

20

Table 9. Revision of online procedures (pension) ((2)-(c)-1)

Efforts led

by: Efforts

Period of


MHLW

・Analyze the current office work flows for

electronic filing at MHLW and JPS and

interview business establishments and

licensed social insurance consultants on

issues concerning electronic filing.

Based on the above, review operation

flows including system upgrade.

FY2017

The burden on and time spent by

business operators will drop as

processing time will be reduced by

electronic filing.

By business establishments switching

from paper-based filing to online filing,

they can:

・Save time for travelling, waiting, and

being served, and also save mailing

cost as they no longer have to visit

administrative offices; and

・Take a procedure at any time from

anywhere.

If they also use personnel/salary

management software compatible with

API of e-Gov for external

coordination, they can draw on

existing personnel/salary data for

easier filing.

MHLW ・Upgrade systems at JPS based on the

review results of work flow revision FY2018

MHLW

・Start electronic filing service based on the

revised work flows at JPS after

completing system upgrade (by the end of

FY2019)

(Leave a format check and a return of

application due to input errors, omissions,

etc. to the system, thereby reducing a

manual examination process by staff and

making sure that accurate data is

processed fast and steadily.)

FY2019

Table 10. Revision of online procedures (employment insurance) ((2)-(c)-2)

Efforts led by: Efforts Period of


MHLW

Procure/modify the next version of the

employment insurance system (“Hello Work

system”)

FY2017

Convenience for business operators

will increase as they will be informed

on reasons for errors and how to fix

them on the spot when filing online.

MHLW Modify the next version of the Hello Work

system FY2018

MHLW, MIC

Launch the next version of the Hello Work

system

Procure/modify the Hello Work system for

enhanced coordination with e-Gov

FY2019

MHLW, MIC Start enhanced coordination of the Hello

Work system with e-Gov FY2020

21

(3) The Government will work toward simplification of procedures by allowing omission of

seals/signatures of employees when they submit notifications through business operators.

Table 11. Omission of seals/signatures of employees

System Efforts Period of efforts

Employees'

Pension

Insurance

With regard to seven kinds of procedures which currently require

seals/signatures of employees, out of nine such kinds except for two of them in

which intentions of employees should be confirmed because of a possible

conflict of interest between business operators and employees, business

operators will be able to omit seals/signatures of employees by stating that

business operators have confirmed the employee’s consent in submitting the

notification concerned.

At the earliest

possible time

during the FY2018

Health

Insurance

With regard to five kinds of procedures which currently require seals/signatures

of employees, out of seven such kinds except for two of them in which

intentions of employees should be confirmed because of a possible conflict of

interest between business operators and employees, business operators will be

able to omit seals/signatures of employees by stating that business operators

have confirmed the employee’s consent in submitting the notification

concerned, or by similar measures.

At the earliest

possible time

during the FY2018

Employment

Insurance

With regard to three kinds of procedures which currently require

seals/signatures of employees, out of four such kinds except for one of them, a

procedure for a certificate of separation from employment, in which intentions

of employees should be confirmed because of a possible conflict of interest

between business operators and employees, business operators will be able to

omit seals/signatures of employees by meeting certain requirements.

October 2018

(4) While promoting electronic filing, the Government will work toward simplification of procedures

for paper-based notifications which will continue to be used, although in limited cases, by unifying

forms and consolidating service counters.

Table 12. Unification of forms/service counters (“One-Stop/Once-Only” procedures)

Efforts led

by: Efforts

Period of


MHLW

Start coordination between related bureaus

for unification of forms and installation of

one-stop service counters, and reach a

conclusion.

FY2017

Businesses will no longer need to

provide same information in different

forms by using a unified form.

They can save time to complete a

notification because they only have to

22

MHLW

Develop office work flows concerning

unification of forms and installation of one-

stop service counters at related bureaus and

implementing institutions (Hello Work, labor

standards inspection offices, JPS)

Modify the Hello Work system, the Labour

Insurance Application and Contributions

Levy System, and the JPS system to handle

unified forms.

FY2018

provide common information (name of

establishment, address, etc.) once.

([Examples of procedures concerning

employees] Notification of status

acquisition: approx. 2.99 million cases;

notification of status loss: approx. 2.93

million cases for Employees’ Pension

Insurance/ Notification of status

acquisition: approx. 940,000 cases;

notification of status loss: approx.

810,000 cases for Health Insurance/ notification of status acquisition: approx.

9.10 million cases; notification of status

loss: approx. 7.54 million cases for

Employment Insurance)

Businesses can save time for travelling,

waiting, and being served by submitting

forms to just one place: a pension office,

labor standards inspection office, or

Hello Work office.)

MHLW

Start service by using unified forms and

installing one-stop service counters at

implementing institutions (by the end of

FY2019)

FY2019

3. Procedures for national taxes / 4. Procedures for national local taxes

The “Basic Program on Reducing Administrative Burden” (March 29, 2017) set a target of

100% utilization of electronic filing of corporate tax returns, etc. by large corporations.

Subsequently, required laws were passed to make it mandatory for large corporations to make

electronic filing, and other efforts were made to meet the Digital First Principle and the Once-Only

Principle, during which the following schedule was adopted. It is necessary to continue efforts

towards computerization/simplification of procedures from the perspective of businesses.

23

Table 13. Procedures for national taxes/local taxes

Efforts Period of efforts

National

taxes/

local

taxes

Make it mandatory for corporations, etc. with a capital of more than

100 million yen to file national taxes (corporate tax, consumption tax,

etc.) and local taxes (corporate inhabitant tax, corporate enterprise tax)

electronically.

As well, create an environment for smooth electronic filing of tax

return data by reducing information to be submitted and simplifying

authentication procedures.

From the first business year

(tax period) starting in or after

April 2020

*A series of environment

development measures will be

implemented by April 2020.

National

taxes/

local

taxes

Efforts for promotion of electronic filing by small and mid-sized

enterprises (electronic filing utilization rate: 85% for national taxes and

70% for local taxes)

National

taxes/

local

taxes

1) Realize one-stop electronic filing of application/notification

concerning opening/discontinuance of business/change by a corporate

taxpayer, 2) Eliminate redundancy in data entry for electronic filing of

corporate tax and two local corporate taxes, 3) Consolidate service

counters for financial statement submission

1), 2): Marche 2020

3): April 2020

National

taxes

For individual taxpayers, 1) Omit ID/Password entry in e-Tax if they

use an electronic certificate mounted on Individual Number Card, and

2) allow the use of e-Tax with ID/Password notified by a tax office

superintendent based on strict identity verification if they have not

obtained Individual Number Card, etc.

January 2019

Local

taxes

Introduce a (joint receipt) system to all local governments so that

businesses could complete payment of corporate inhabitant taxes, etc.

electronically at one time.

October 2019

24

5. Procedures for subsidies

(1) Develop and test a subsidy application system starting from major subsidies for small and mid-

sized enterprises from FY2018.

(2) Put “Once-Only” procedures into practice for major subsidies granted by individual ministries and

agencies from FY2020. In so doing, consolidate differences among procedures as much as possible.

Request local governments to simplify their subsidy application procedures as well based on the

results of the national level effort.

(3) Continue to work on simplification and introduction of online services to procedures after “the

application/grant decision stages” as well. (METI will start discussions ahead of other ministries

and agencies and then share results with them.)

Table 14. Full-scale development of an online application system for subsidies

Efforts led

by: Efforts

Period of


METI

Review operations (BPR) for

simplified application procedures and

discuss system specifications as well.

In addition, standardize names of

similar information items and how to

enter information regarding multiple

subsidies for SMEs.

FY2017

Businesses will no longer need to repeat

same information (company name, address,

financial information, etc.) on different

paper forms if they apply for multiple

subsidies.

(Realization of “Once-Only” procedures by

data utilization through computerization)

By using a convenient online system,

businesses will no longer need to visit

service counters to apply for subsidies.

METI

Develop a prototype subsidy

application system and test it for

subsidies for SMEs.

*MHLW will join discussions in view

of computerization of application

procedures for employment

subsidies. Further consolidate

application forms based on needs

of SMEs and local governments.

FY2018

METI

Based on the above verification test

result, proceed with full-scale

development of a subsidy application

system and introduce it on a test basis

to multiple subsidies for SMEs.

FY2019

25

Table 15. Realization of “Once-Only” procedures in subsidy application, etc.

Efforts led

by: Efforts Period of efforts Effects of efforts

METI

(Each

ministry and

agency)

Examine and prepare procedures for

major subsidies of each ministry and

agency by FY2019, and aim to

introduce a full-fledged subsidy

system in FY2020. In so doing,

consolidate differences among

different procedures as much as

possible.

FY2019

(“Once-Only”

procedures put

into practice

from FY2020)

Businesses will no longer need to repeat

same information (company name, address,

financial information, etc.) on different

paper forms if they apply for multiple

subsidies (grants).

(Realization of “Once-Only” procedures by

data utilization through computerization)

By using a convenient online system,

businesses will no longer need to visit

service counters to apply for subsidies.

METI

(MIC)

Inform prefectures on the central

government’s efforts for

computerization of subsidy

application procedures and request

their cooperation by the end of June

2018.

FY2018

26

6. Providing responses to statistical studies and other surveys

(1) With regard to statistical studies and other surveys, the Subcommittee requested ministries and

agencies to improve basic implementing plans based on the policies expressed in the “Final Report

by the Council for Promotion of Statistical Reform” (May 19, 2017) to make sure to achieve 20%

reduction by introducing online surveys, reducing the number of reporters and survey items,

substituting administrative record information for new entry, and providing forms with already

known information printed on (pre-print). As the introduction of online surveys has been officially

planned as a reduction measure, all statistical surveys including ones that are yet to be available

online will be conducted online.

Table 16. State of formulation of basic implementing plans (statistical studies and other surveys)

Presiding offices and

ministries

Statistical

surveys subjects

under basic

implementing

plans

No. of cases processed

under basic

implementing plans per

year (approximate)

Reduction rate

National Personnel

Authority

3 23,230 20.0%

Cabinet Office 5 51,624 20.0%

MIC 6 2,013,096 31.8%

MOF 3 254,980 20.6%

MEXT 6 36,955 22.3%

MHLW 37 1,568,444 20.3%

MAFF 30 375,493 20.3%

METI 33 1,976,461 20.0%

MLIT 27 824,198 25.6%

MOE 3 45,200 20.0%

Total 153 7,169,681 23.5%

Table 17. State of implementation of reduction measures in statistical surveys

Type of efforts Reduction measures (*2) No. of cases of

implementation

Percentage of

statistics under

reduction measures

Computerization

Online convenience

improvement 122 79.7%

Introduction of

computerization 50 32.7%

Once Only Pre-print 68 44.4%

Redundancy elimination 6 3.9%

Simplification Improved entry instructions 88 57.5%

Limits in survey items 39 25.5%

27

Reduction of reporters 23 15.0%

Improvement of definitions,

etc. 20 13.1%

Revision of survey

frequency 4 2.6%

Discontinuation of a

statistical survey 3 2.0%

Replacement with public

information 2 1.3%

Integration and elimination

of survey forms 2 1.3%

*1 Statistical surveys under basic implementing plans number 153 in 10 offices, ministries, and agencies.

*2 Classified according to the “examples of reduction measures” included in “Re: Points to be noted when

formulating business implementing plans concerning ‘Providing responses to statistical studies and other

surveys’ (limited to those related to statistical surveys based on the Statistics Act), a prioritized area of

administrative cost reduction” (issued by Director-General for Policy Planning, MIC on June 9, 2017)

*3 The table only shows reduction measures which were implemented to two or more cases. Other reduction

measures include enumerators’ skill improvement, etc. (total 14 cases).

(2) Based on requests from businesses, (1) Economic Census, etc. was added to surveys that are

covered by basic implementing plans. (2) Survey forms will be able to be printed out with personnel

and labor management software in which salary information was already provided, for their easier

completion. (To be implemented from 2020 surveys.)

7. Procedures for labor management of corporate members

(1) The target of electronic filing rate will be set at 31% (from the current below 1%) by omitting

electronic signatures, etc. in the three most-used procedures under the Labor Standards Act

(notification of agreement on overtime work/working on holidays, notification of agreement on a

one-year variable working hour system, notification of rules of employment), and thereby reducing

administrative costs on businesses by 20%.

(2) The use of a report concerning special enrollment (employees posted overseas) in procedures for

workmen’s compensation insurance will be discontinued, and thereby reducing total administrative

costs of filing by 45%.

(3) With regard to procedures for employment subsidies, simplification and introduction of online

services will be promoted based on the following schedule:

Table 18. Simplification concerning employment subsidies

28

Efforts led

by: Efforts

Period of


MHLW

Discuss a schedule for online service

introduction, etc.

Revise provision requirements, application

forms, etc. (in phases by FY2019)

FY2017 ・Burdens on applicants will be reduced,

and time required for filing will be

shortened. (Provision requirements

will be revised and less information

will be required.)

・Once online services become

available, businesses do not have to

submit documents by visiting Hello

Work, etc. (Travelling and waiting

time can be saved.)

MHLW

Discuss online service introduction in

details.

Request a budget for system design.

FY2018

MHLW Design systems.

Request a budget for system design.

FY2019

(Aiming for

system

activation

from

FY2020)

29

8. Procedures for commercial registrations

(1) The “New Economic Policy Package” (December 8, 2017) states that a concreate plan to realize

an online process to complete registration of incorporation within 24 hours will be developed by

the end of FY2017. To avoid discussions on the same issues taken up by the “Study Group for

Realization of Online One-Stop Incorporation Procedure” (General Bureau for Japan’s Economic

Revitalization) while working together with the Study Group, the Subcommittee mainly discussed

on topics other than registration of incorporation.

(2) According to Table 19 (submitted by MOJ), issues include, in addition to 1) too much time required

for completion of registration procedures, 2) high correction ratios and 3) almost no usage of online

filing by principals.

Table 19. Registration of incorporation/change of directors of stock companies (total)

Base date: October 2, 2017

No of

filings

Registration

of

incorporatio

n

Change of

directors

No. of

cases of

correction

Correction

rate (%)

No. of

online

filings

Percentage Average number of days

spent to complete a

procedure

Filed by

principals

253 75 29.6% 2 0.8% 16.1 15.2

Without

correction

178 0 0.0% 15.4 14.0

With

correction

75 2 2.7% 18.4 17.9

Qualified agents 903 121 13.4% 759 84.1% 15.7 14.6

Without

correction

782 664 84.9% 15.8 14.1

With

correction

121 95 78.5% 14.6 18.2

* Surveyed data are registrations of incorporation of stock companies and registrations of change of directors of stock

companies filed at (head offices of) Tokyo Legal Affairs Bureau, Osaka Legal Affairs Bureau, Nagoya Legal Affairs Bureau, Hiroshima Legal Affairs Bureau, Yokohama District Legal Affairs Bureau, and Kyoto District Legal Affairs Bureau on Monday, October 2, 2017.

(3) Basic implementing plans will be revised according to a report soon to be put together by the above

Study Group (during April 2018).

(4) In so doing, targets regarding registration of change of directors should be set to realize an

30

appropriate process of the world’s highest standard based on measures included in the summary of

the Study Group (especially, “IV. Realization of an online process to complete registration of

incorporation within 24 hours and thorough computerization of operations aiming to realize an

appropriate and fast process of the world’s highest standard”), and on the fact that items to be

examined are fewer than those in the procedure of registration of incorporation which aims for

completion within 24 hours.

9. Issuance of certificates as the request of corporate members (employment certificates)

(1) As businesses are forced to deal with different forms used by different local governments regarding

employment certificates which will be required when parents use day care facilities, etc., relevant

ministries and agencies developed an electronically writable standard form and urged local

governments to use it in August last year.

(2) The Subcommittee discussed revision of the standard form to make it usable by various local

governments while taking needs of businesses into account. As well, relevant ministries and

agencies conducted surveys of local governments as to the utilization of the standard form and the

availability of online entry in December last year. (Results as of January this year are as follows:

24% of respondents said they would use the standard form starting from children entering day care

facilities in April this year, 4% from children entering day care facilities in May or later this fiscal

year, 9% from children entering day care facilities the next fiscal year, and 51% said they were

undecided whether to use the standard form.) * The National Strategy Office of Information and Communications Technology of the Cabinet Secretariat,

Children And Child�Rearing Administration of the Cabinet Office, and MHLW jointly released “Re: Standard form for employment certificates required for certification of the need for childcare” in August 2017 and “(Request) Re: Survey on the utilization of the standard form for employment certificates and the availability of online entry and points to be noted before using the standard form” in December the same year.

(3) Based on the results of the above survey among others, the basic implementing plans revised the

by the Cabinet Office call for discussions on required actions including revision of the standard

form and sets a target of 30% reduction of administrative costs on businesses by March 2020.

Currently, only fewer than half of local governments have adopted or will adopt the standard form

and more than half are yet to decide whether to adopt it. The Government needs to find out reasons

for this slow adoption and further promote the form to local governments to achieve the target.

31

10. Procedures for submitting a bid to or entering into a contract with an administrative

ministry or agency

(1) In addition to the nine prioritized areas, the same target, “20% reduction of administrative costs

(hours spent by businesses) by 2020 in principle,” will also apply to “bids and contracts,” on which

many businesses, especially small and medium-sized enterprises, wanted simplification. (The

Subcommittee decided to continue discussions on “bids and contracts” when it released the

previous report in March last year.) As well, the Government will aim to make it unnecessary for

businesses to submit copies of certificates of registered matters or certificates of tax payment

through information sharing among administrative agencies as part of the government-wide efforts.

(Note) With regard to bids and contracts, while each ministry or agency is responsible for deciding counterparties

and concluding contracts, MIC is supposed to lead simplification efforts on procedures for contracts of goods

and services and MLIT is in charge of simplification of procedures concerning construction works and surveys.

(2) The following efforts will be made to reduce administrative costs regarding goods and services:

1) Improvement of systems

・Make the following efforts on the Government Electronic Procurement System (procedures

regarding contracts and bids) as it will be upgraded in January 2020

・ Also, make the following efforts on the Integrated Procurement Information System

(procedures regarding application for competition entry screening) while working on step-

by-step system improvement required for elimination of the requirement of submitting

attached documents.

・Discuss future integration of the two systems.

Table 20. Roadmap for system improvement

Efforts Period of

efforts

Integrated Procurement

Information System

(procedures regarding

application for competition

entry screening)

Put together matters to be improved concerning the system FY2017

System improvement

・Enable automatic conversion between single-byte characters

and double-byte characters

・Display locations of errors in entered data

(Revise the application data entry screen as attached documents

will be made unnecessary.)

・Deal with a new era name, etc.

FY2018-

FY2019

System improvement

(Revise the application data entry screen as attached documents

will be made unnecessary for the activation of the

registry information system (during FY2020).)

FY2019-

FY2020

Government Electronic Put together matters to be improved concerning the system FY2017

32

Procurement System

(procedures regarding

contracts and bids)

Requirement definition, basic design, and detailed design of the next

version of the system

・ Increase the upper limit of attached file size for document

submission.

(Discuss the use of cloud technology)

・Enable automatic conversion between single-byte characters and

double-byte characters

・Display locations of errors in entered data, deal with a new era

name, etc.

FY2017-

FY2018

(FYI) Schedule for the next

system upgrade Procurement procedures (Tender notice) FY2017

Requirement definition, basic design, and detailed design of the next

version of the system (See above.)

FY2017-

FY2018

Production, operation test FY2018-

FY2019

Launch the next version of the system January 2020

2) Elimination of the attached document requirement for screening application

・Of attached documents required when applying for competition entry screening in the

Integrated Procurement Information System;

(�) Submission of (copies of) a certificate of registered matters and a certificate of tax

payment will be made unnecessary in FY2020 or later when back offices of administrative

agencies are linked to each other using Corporate Number, etc. based on the “Basic Policy

for Formulation of New IT Strategies” (decided by the Strategic Conference for the

Advancement of Public and Private Sector Data Utilization, IT Strategic Headquarters) and

the “Digital Government Execution Plan” (decided by the eGovernment Ministerial

Conference).

(ii) Submission of a business report and a written oath/roster of directors will be made

unnecessary from the next regular screening for competition entry (January 2019-) when

these documents will be integrated into an application form.

・Discussions will be made to make submission of financial statements unnecessary in principle

by using other methods such as confirming them online.

33

Table 21. Roadmap for elimination of the attached document requirement for screening application


(Copy of) certificate of

registered matters

“Introduction of an online one-stop procedure for registration of

incorporation and promotion of sharing of corporate registry

information” (Digital Government Execution Plan)

・Manage the entire project for elimination of the requirement of

attaching a certificate of registered matters (Basic policies,

schedule, legal revision, etc. to be discussed) [Cabinet

Secretariat/MIC]

・Develop the system for sharing of registry information (Upgraded

system to be launched during FY2020.) [MOJ]

FY2018-

FY2020

Eliminate the requirement of submission FY2020

(Copy of) certificate of tax

payment

Make efforts as part of the government-wide program for the

“Basic Policy for Formulation of New IT Strategies” (decided by

the Strategic Conference for the Advancement of Public and Private

Sector Data Utilization, IT Strategic Headquarters) and “100%

computerization of administration services”

・Relevant laws need to be developed for sharing of tax payment

information among back offices.

(Security to be ensured for highly confidential tax payment

information)

FY2018-

Business report and written

oath/roster of directors

・Decide a filing form

・Revise the filing manual, etc.

・Inform users

FY2018

Eliminate the requirement of submission FY2018

Financial statements or

documents concerning net

capital and income and

expenditure statements

Discuss measures for making submission unnecessary in principle

・Discuss measures to confirm details of financial statements online

(E.g., Related ministries and agencies discuss possibilities of

utilizing the website, “Hojin (Corporate) Information.”)

FY2017

Make efforts as part of the government-wide program for the

“Basic Policy for Formulation of New IT Strategies” (decided by

the Strategic Conference for the Advancement of Public and Private

Sector Data Utilization, IT Strategic Headquarters) and “100%

computerization of administration services”

FY2018-

3) Raising of public awareness

・To promote the use of the Integrated Procurement Information System and the Government

Electronic Procurement System, various measures will be taken including informing private

users on advanced examples concerning electronic procurement, improving operation

manuals and FAQ, and reforming the way of thinking by personnel and operations at

ministries and agencies.

Table 22. Roadmap for raising public awareness

34


Promotion of the utilization

by the private sector

・Put together the state of efforts on electronic bidding, electronic

contracts, etc. as referential information (Utilize advanced

examples for promotion)

FY2017-FY2018

・Improve operation manuals, FAQ, etc. and promote the use of

help desks

・Create posters and implement PR campaigns

・Improve lecture classes for users (held in metropolitan areas

and the provinces), etc.

FY2018-

Thorough utilization by

ministries and agencies

・Put together the state of efforts on electronic bidding, electronic

contracts, etc. as referential information (Utilize advanced

examples for promotion)

FY2017-FY2018

・ Release notices to ministries and agencies (for raising

awareness of personnel and making sure of system utilization) FY2018

・Reform operations (starting from immediately doable changes

and reviewing the changes by running PDCA cycles) FY2018-

35

(3) The following efforts will be made to reduce administrative costs for construction works/surveys:

1) Simplification and introduction of electronic filing of required documents for business

evaluation

・Simplification of required documents for business evaluation will be discussed for future

introduction of electronic filing based on the fact that preparation of some documents and

evaluation are heavily burdensome to both applicants and licensing agencies.

・Discussions of document simplification will also cover an enhanced post-check system

concerning submitted documents and stricter penalties in the event that false filing has been

found in order to ensure the required evaluation accuracy.

・With regard to simplification of documents to be filed for business evaluation, things that can

be implemented by March 2020 before introduction of electronic filing will be discussed.

2) Efforts in the Liaison Council for Operation of the Contract System for Central Public Works

・In response to the Subcommittee’s recommendation, the Liaison Council requested public

agencies (central ministries and agencies and independent administrative agencies) that

procure construction works, surveys, etc. to join the Liaison Council. As a result, the number

of member agencies jumped from 13 central ministries and agencies and 18 agencies

including independent administrative agencies (total 31 agencies) to 17 central ministries and

agencies and 70 agencies including independent administrative agencies (total 87 agencies).

・Going forward, the Liaison Council will work on unification of forms for the use in

competition entry screening of FY2019 and FY2020.

3) Efforts for simplification of bidding and contract procedures using the Regional Orderer

Council

・Information will be shared among orderers on efforts concerning simplification of bidding

and contract procedures by utilizing the “Regional Orderer Council” in which the central

government and all local governments participate.

4) Efforts for simplification of materials to be submitted (Simple confirmation type)

・Businesses were conventionally required to submit documents consisting of around 15

different types, amounting to 70 pages (according to the actual results) for confirmation of

their qualification for participation in competition. These documents will be replaced by a

single page of simple technical document, on which an evaluation score will be calculated.

More specifically, the top three scorers will be shortlisted as potential bidders and asked to

submit documents which confirm their qualifications for participation in competition

[detailed technical documents], and then simple technical documents will be reviewed.

・This measure was introduced on a trial basis from the second half of FY2016 and has been

widely applied since FY2017.

・Numerical promotion targets up to March 2020 will be discussed.

36

IV. Cross-sectional efforts

1. Three Principles for Administrative Burden Reduction

1) Pursuit of Thoroughness in Computerization of Administrative Procedure (Digital First

Principle)

Not merely aiming for “realization of online submission,” complete computerization of

administrative procedures must be envisioned while utilizing measures to promote IT

introduction to (a million of) SMEs. The basic implementing plans call for the following efforts:

・Make online procedures mandatory (national taxes, local taxes, social insurance)

・Require large corporations (with a capital of over 100 million yen) to use electronic filing

(FY2020-)

2) Once Only (Once-Only Principle)

It is necessary to develop a platform which will relieve businesses of the hassles of providing

same information.

(Tax/social insurance, subsidies, registration of incorporation, bids/contracts)

3) Uniform Documentary Forms

A taskforce of the Council for Promotion of Regulatory Reform will discuss this matter.

2. Simplification of identity verification procedures from the user’s perspective

(1) At the Council on Investments for the Future (March 30, 2018), Prime Minister Abe stated that

thorough reforms should be pursued from a user-oriented perspective, including initiatives that will

make it possible for users to allow the verification of their identification with their smartphones..

When promoting computerization, it is crucial to revise the way of authentication to do away with

electronic signatures, etc. wherever it is possible so that users would have no difficulties in identity

verification.

37

Table 23. Revision of identity verification methods



National Strategy

Office of

Information and

Communication

Technology

Develop “Guidelines concerning methods

to verify identity and secure authenticity in

administrative procedures in a digital

society”

(Repeal “Guidelines for risk evaluation,

electronic signatures, and authentication in

online procedures”

*Cooperation with NISC)

April 2018

(tentative)

Appropriate identity verification

will be required when various

existing procedures become

available online. Such necessary

identity verification will be available

by simpler methods including

electronic authentication with

ID/Password.

National Strategy

Office of

Information and

Communication

Technology

Develop “Technical guidebook concerning

methods to verify identity and secure

authenticity in administrative procedures in

a digital society”

End of

August 2018

(tentative)

Technical summary of

implementation methods and

important notes necessary for

computerization

Each ministry and

agency

Revise identity verification methods based

on the above guidelines

*Only highly important procedures will

require electronic signatures.

FY2019

*The need of electronic signature

will be closely examined for each

procedure in consideration of the

balance between users’

convenience and information

security. The corporate

authentication infrastructure will

replace electronic signature

wherever it is possible.

Table 24. Development of the “corporate authentication infrastructure”



METI

Examine specifications for an electronic

authentication system based on the use of

one set of ID and Password

FY2017 Businesses will be able to save time

and labor for subsidy application and

other administrative procedures as

identity can be verified by simple

methods. (The need of electronic

signature will be closely examined

for each procedure in consideration

of the balance between users’

convenience and information

security. The corporate

authentication infrastructure will

replace electronic signature

wherever it is possible.)

METI

(Relevant

ministries and

agencies including

MHLW and MIC)

Develop the “corporate authentication

infrastructure” using ID and Password as

identity verification infrastructure which

does not use electronic signature. Discuss

how to manage IDs of sole proprietors who

do not have Corporate Number. Relevant

ministries and agencies including MHLW

and MIC will participate in discussions

from the initial phase.

FY2018

METI Introduce the corporate authentication

infrastructure on a trial basis to multiple FY2019

38

(Each ministry

and agency)

administrative procedures of METI. Other

ministries and agencies will discuss

implementation to their own procedures.

METI

Introduce the corporate authentication

infrastructure to procedures of METI on a

full scale. The system will be shared with

other ministries and agencies as well.

FY2020

(2) More specifically, each ministry and agency will promote the following efforts based on the

“Guidelines concerning methods to verify identity and secure authenticity in administrative

procedures in a digital society” (to be adopted by the Liaison Council of Chief Information Officers

(CIO) of Ministries and Agencies):

・Identity verification will be made digitally according to the verification level summarized in

Table 25.

・ When going digital, procedures currently requiring “strict” level identity verification will be

reviewed to see if “medium” or “simple” level identity verification will do, and likewise,

procedures currently requiring “medium” level identity verification will be reviewed to see if

“simple” level identity verification will do. Then, the digital method of identity verification

for each procedure will be decided.

・Procedures currently requiring “simple” level identity verification will require the same level

identity verification when going digital. In other words, the verification level of such

procedures will not be raised to a “strict” or “medium” level in digital identity verification.

39

Table 25. Correspondence table of identity verification methods before and after revision

Verification

levels Current identity verification methods

Digital identity verification methods

Strict

・Registered seal + Seal-registration

certificate

・Signature + Registered seal +

Seal-registration certificate

・Electronic signature method

・ID/Password method

(Name, etc. to be confirmed)

Medium

・Registered seal

・Signature to express one’s

agreement

・Signature + Unregistered seal

・ID/Password method

(Name, etc. not to be confirmed)

Simple

・Unregistered seal

・Printed name ＋Unregistered seal

・Printed name

・Signature to express one’s

confirmation

・Providing name to electronic documents,

email, etc.

・Click button

・Filling out forms, etc.

[ID/Password method can be used.]

(3) MOJ has announced a plan to change mandatory registration of a company representative’s seal to

a system where businesses can choose to register electronic signature instead. (If a business

registers its electronic signature, it will not have to register a seal.) However, should there be

administrative procedures requiring a seal on paper, it will be no use choosing registration of

electronic signature and businesses cannot help but register their seals. Therefore, if any paper-

based procedures have to remain available temporarily, they need to be revised so that a company

representative’s seal or other seals would not be required.

(4) As of the end of February 2018, there were 29,151 effective electronic certificates based on

commercial registration (according to materials submitted by MOJ on March 23, 2018).

3. Cross-ministerial efforts for “Once-Only” procedures

To promote “Once-Only” procedures, it is important to move on from simplification of

administrative procedures of individual ministries and agencies to eventual realization of cross-

ministerial digital one-stop services including “online one-stop registration of incorporation,”

“online one-stop tax/social insurance procedures,” and a “subsidy platform.”

With regard to the above, Prime Minister Abe stated in the meeting of the Council on Investments

for the Future (March 30, 2018), “Processing taxes and social security documents for their

employees are large burdens for many companies, especially small- and medium-sized enterprises.

These burdens stifle productivity improvements in companies. We must look at administrative

procedures from the viewpoints of citizens, who are the ones who receive governmental services,

40

and work to overcome silos in such procedures. We will prioritize the procedures for deaths,

inheritance, and the establishment of corporations as core projects, and, starting from next year, work

to enable the completion of these procedures online and in one place by FY2020.”

Based on this, prompt efforts will be made for realization of online one-stop tax/social insurance

procedures for employees according to the following schedule. (See page 24 for the subsidy

platform.)

Table 26. Online one-stop tax/social insurance procedures

4. Towards realization of “Digital First” procedures (complete computerization of administrative

procedures)

(1) Revision of administrative procedures, which currently require the public to submit attached

documents, is important in carrying out administrative reform as well as in realizing Digital

Government.

(2) As well, when promoting complete computerization of administrative procedures, it is important

to develop easy-to-use systems through an uncompromising pursuit of improvement from the

perspective of businesses.

1) The requirement of attached documents will be removed and all necessary information will be

provided in filing forms. Submission of materials that can be confirmed online will be made



National

Strategy Office

of Information

and

Communications

Technology

Make an inventory of information

businesses are required to submit to

administrative agencies starting from

FY2017 and advance necessary

discussions for development of a

system which relieves businesses of the

hassles of providing same data twice by

identifying technical issues.

FY2017

Businesses will no longer need to submit

same information concerning themselves

and their employees to administrative

agencies for every procedure for social

insurance and tax. National

Strategy Office

of Information

and

Communications

Technology

Work out a roadmap regarding

information contained in documents

submitted to administrative agencies in

FY2018 for development of a system

which relieves businesses of the hassles

of providing same data twice. Then

gradually proceed with development of

the system.

FY2018

41

unnecessary in principle. (For example, if every attached document had to come with an electronic

signature, it would be more hassle than paper-based submission.)

2) Filing systems will be made easy to use for not only professionals providing agency service in

administrative procedures but also businesses. (For example, in commercial registrations, the

online filing usage rate of agents is around 80% whereas that of principals is almost 0%.)

3) In addition to realizing online services in the filing stage, internal procedures in administration

services should also be computerized for faster and more efficient processing. (For example, the

statistical reform aims to reduce not just costs borne by businesses but “public and private costs”

by 20%.) To this end, it is important to revise laws, procedures, and work flows for application of

IT rather than simply substituting IT for existing laws, procedures, and work flows. For example,

in routine screening, it is important to consider the introduction of machine-readable technology,

etc.

4) It is important to grant incentives to electronic filing users including priority processing and

lower fees.

5) Reasonability of cost allocation in backyard coordination based on Individual Numbers will be

verified from the perspective of promoting computerization. (For example, a fee of 10 yen will

be collected every time Japan Agency for Local Authority Information Systems is queried for

address information.)

(3) The Subcommittee will request the National Strategy Office of Information and Communications

Technology, Cabinet Secretariat to check efforts of each ministry and agency from the following

perspectives when ministries and agencies develop mid- to long-term plans based on the Digital

Government Execution Plan. The Subcommittee will also provide a follow-up as needed.

1) Elimination of the requirement of attached documents

(Effective not only in reduction of travelling time but also in prevention of arbitrary instructions

at service counters)

2) Revision of identity verification methods

3) Elimination of the requirement of face-to-face services (See (2) 1).)

4) Development of easy-to-use filing systems based on API coordination (See (2) 2).)

5) Provision of incentives to those who switched to electronic filing (See (2) 4).)

The Subcommittee will also call for discussions on the inclusion of “Elimination of the

requirement of attached documents” and “Revision of identity verification methods” in the

“Digital First bill” to be submitted to the Diet.

42

5. Elimination of unique operation rules of each local agency of the Government (so-called local

rules)

The Subcommittee interviewed businesses to learn about actual conditions of unique operation rules

of each local agency of the Government. As a result, the Subcommittee has found that there are still

such rules in place concerning some approvals and licenses as well as social insurance, and called

for necessary improvement accordingly. Ministries and agencies should proactively find out the

actual conditions from businesses and make sure that no local rules remain active to provide unified

services across the country.

43

V. Simplification of local procedures

1. Importance of administrative cost reduction by local governments

In addition to simplification of national procedures, simplification of procedures of local

governments, such as procedures for local subsidies and approvals and licenses based on ordinances,

is extremely important. Tottori Prefecture, for instance, produced great results in reduction of

administrative costs by setting a target (of 30% reduction in a year) which was higher than the central

government’s. (Table 27)

Table 27. Cost measurement results and reduction targets of Tottori Prefecture

Hours spent

Reduction targets

Hours reduced Reduction

rates Approvals

and licenses

2.82 million hours 0.85 million hours 30%

Subsidies 1.61 million hours 0.48 million hours 30%

Total 4.43 million hours 1.33 million hours 30%

If such efforts are rolled out nationwide, huge effects can be expected. In addition to cost reduction

effects (of around 80 million hours or 200 billion yen) expected from the national level efforts, if all

prefectures make efforts similar to Tottori’s (and achieve 20% reduction), cost reduction effects will

be estimated at around 200 million hours (or 500 billion yen). (Table 28)

Table 28. Expected effects of rolling out Tottori Prefecture’s efforts

(approvals and licenses, and subsidies) to all other prefectures (20% reduction)

Hours spent [Monetary term]

Rough estimate of reduction Hours reduced [Monetary terms]

Reduction rate

Total of approvals and

licenses/subsidies

986.40 million hours [2,508.4 billion yen]

197.28 million hours [501.7 billion yen]

20%

*1 Calculated assuming that administrative costs per person of any prefecture is the same as those of Tottori

Prefecture. In other words, “Hours spent” was calculated by dividing 4.43 million hours, Tottori

Prefecture’s administrative costs, by Tottori’s population 570,000 and then multiplying the result by

national population 126.933 million. Population data are as of October 1, 2016.)

*2 Converted to monetary amounts by assuming labor cost is 2,543 yen/hour from the Financial Statements

Statistics of Corporations by Industry, etc. (See page 4.)

44

Effects of national efforts (previously shown)

Hours

spent per

case

Total number of cases

processed

(Subject to cost

measurement)

Hours spent

(Monetary terms)

Hours reduced

(Monetary terms) Reduction rate

4.6 hours 75,232,656 cases 347.27 million hours

(883.1 billion yen)

77.00 million hours


2. Discussions at the Council on Economic and Fiscal Policy

When the Council on Economic and Fiscal Policy discussed on the “Promotion of local administrative

and financial reforms” on December 1, 2017, an expert member submitted a document that essentially

argued for creation of a virtuous cycle of local economies and local administration and finance by

“increasing assistance to local governments which promote administrative cost reduction and produce

good results” while referring to the case of Tottori Prefecture above. The document stated, “Promoting

administrative cost reduction at local levels in keeping with the national government’s efforts will

produce multiplied effects in quality improvement of administration services and reduction of burdens

on corporations. Relevant ministries and agencies should work together and identify issues to help roll

out reduction efforts across the country.” Some also argued that the Government should look at results

of local efforts when deciding on financial assistance to the region (by treating the results as a factor

to decide the “administrative reform effort portion” of the “local revitalization project cost,” part of a

local government block grant).

3. Uniform documentary forms at local governments

This will be discussed in a taskforce of the Council for Promotion of Regulatory Reform. As it is

expected to reduce administrative costs, the taskforce will consider cost measurement of efforts that

produce significant reduction effects.

4. Promotion of efforts by local governments

The Government needs to consider requesting local governments’ understanding and cooperation for

reduction of administrative costs on businesses. (Local government efforts for simplification of

procedures for approvals/licenses and subsidies, and adoption of uniform documentary forms.) The

Government should also support local governments which are actively engaged in simplification of

administrative procedures and provision of online procedures. The top and all other levels of

communication should be utilized to call for cooperation of local governments and to encourage them

to keep pace with the national government in efforts of administrative cost reduction.

45

VI. Future efforts

1. Check and review

Based on the basic implementing plans that were revised by the end of March this year, ministries and

agencies should implement changes to realize 20% or more reduction of costs on businesses by 2020.

To this end, the Subcommittee will check and review ministerial efforts from the following

perspectives:

1) The Subcommittee will regularly evaluate the state of progress of efforts included in the schedules

and request additional measures for inadequate or ineffective efforts. (The Subcommittee will check

and review the progress of efforts of FY2017 in May this year.)

2) The Subcommittee will measure costs quantitatively to see by how much businesses are relieved

of burdens. Cost measurement will be additionally made for procedures for submitting a bid to or

entering into a contract with an administrative ministry or agency.

3) With regard to procedures designated as core projects by the Council on Investments for the

Future, further cost reductions are expected in addition to 20% reductions included in the existing

implementing plans. Therefore, the Subcommittee will conduct check and review as ministries and

agencies work out details.

2. Roll-out to local governments

(1) The top and all other levels of communication should be utilized to call for cooperation of local

governments and to encourage them to keep pace with the national government in efforts of

reducing administrative costs on businesses. (Simplification of procedures and adoption of uniform

documentary forms by local governments.) (2) As well, the Government will support local governments that are actively engaged in reduction of

administrative costs.

→If all prefectures make efforts similar to Tottori’s (and achieve 20% reduction), cost reduction

effects will be estimated at around 200 million hours (or 500 billion yen). By using this estimate

as a rough target, the Government will roll out efforts to local governments. (See Table 28 in

page 43.)

3. Further simplification from the perspectives of “workstyle reform” and “productivity

improvement”

At the time of writing, approvals and licenses other than “Business approvals and licenses (approvals

and licenses based on so-called business laws)” (Questionnaire Survey Sent to Businesses of last year

(Table 29)) and “Procedures after filing (preservation, inspection of documents)” among others are not

46

subject to cost reduction. For these procedures as well, the Government will promote reduction of

administrative costs on businesses from the perspectives of “workstyle reform” and “productivity

improvement” while taking needs of businesses into account.

Table 29. Other areas

*Based on Questionnaire Survey Sent to Businesses

Areas Number of

responses

Procedures for business approvals and licenses 574

Procedures for facility safety (including fire protection) 129

Procedures for buildings 113

Procedures for import and export permits for commodities 87

Procedures for application for and examination of intellectual property rights 87

Procedures for land use 82

Procedures for real estate registration 76

Procedures for utilization of roads and rivers 70

Procedures for environmental protection 67

Procedures for customs 66

Procedures for safe management of chemicals 60

Procedures for succession of a business (stock shares and business assets) 46

Procedures for industrial safety 44

Procedures for ports and harbors 29

Procedures for safety and proper labeling of food, housewares and other supplies 28

Procedures for permits and licenses required for other business activities 22

Procedures for living environment 21

Procedures for other issues 77

47

Types of Burdens Imposed by Administrative Procedures

(Questionnaire Survey Sent to Businesses)

Note 1: The total number of responses concerning burdens imposed by all procedures.

Note 2: The “total” is the total of responses that represented “burden” concerning all procedures at all stages of the

development of a business, which are “startup,” “continuation and expansion,” and “termination and succession.”

Types of burdens imposed on businesses

Total Startup

Continuation

and

Expansion

Termination

and

Succession

1

It is too much work to create documents for submission (Internal

paperwork (including collecting documents) and payments to

external professionals)

3707 584 2751 372

2 It is difficult to understand how and what to write in application

forms 2205 416 1538 251

3 Different formats are required for a single procedure by different

offices (e.g., local municipalities, local departments and agencies) 1212 123 982 107

4 Part or all of a procedure cannot be completed online (attachments

need to be submitted separately in paper format or on a CD) 1197 166 931 100

5 Completion of administrative procedures requires large amounts of

time 1110 187 838 85

6 The same documents have to be submitted to multiple

organizations, departments, and representatives 967 202 670 95

7 Criteria for evaluation are unclear 967 106 818 43

8 Different organizations, departments, and representatives have

different evaluation criteria for the same procedures 864 98 692 74

9 The progress of an application within an administrative body

cannot be tracked once documents have been submitted 825 92 658 75

10 A procedure can be completed online, but the website is difficult

to use (it is quicker to submit a document in a paper format) 680 67 543 70

11 The reason for a document being requested is not always clear 526 60 427 39

12 How much time it will take to complete a procedure is uncertain 450 57 355 38

13 Applications get rejected 118 15 95 8

Appendix 1

48

Target Areas of the Efforts

(Results of Questionnaire Survey)

Areas

Total

Number of

responses

Proportion

of responses

(%)

Cumulative

percentage

(%)

1 Procedures for business approvals and licenses Government-wide

procedures 574 11.2 11.2

2 Procedures for social insurance Individual procedures 535 10.4 21.7

3 Procedures for national taxes Individual procedures 473 9.2 30.9

4 Procedures for local taxes Individual procedures 461 9.0 39.9

5 Procedures for subsidies Government-wide


6 Providing responses to statistical studies and other surveys Government-wide


7 Procedures for labor management of corporate members Individual procedures 287 5.6 60.1

8 Procedures for commercial registrations Individual procedures 285 5.6 65.7

9 Issuance of certificates as the request of corporate members Individual procedures 188 3.7 69.3

10 Administrative burden about procedures for employees’ tax

payments Individual procedures 322 6.3 75.6

11 Procedures for submitting a bid to or entering into a contract

with an administrative ministry or agency

Government-wide


12 Procedures for facility safety (including fire protection) Individual procedures 129 2.5 81.0

13 Procedures for buildings Individual procedures 113 2.2 83.2

14 Procedures for import and export permits for commodities Individual procedures 87 1.7 84.9

15 Procedures for application for and examination of

intellectual property rights Individual procedures 87 1.7 86.6

16 Procedures for land use Individual procedures 82 1.6 88.2

17 Procedures for real estate registration Individual procedures 76 1.5 89.7

18 Procedures for utilization of roads and rivers Individual procedures 70 1.4 91.0

19 Procedures for environmental protection Individual procedures 67 1.3 92.3

20 Procedures for customs Individual procedures 66 1.3 93.6

21 Procedures for safe management of chemicals Individual procedures 60 1.2 94.8

1. Prioritized Areas

2. Other Areas

Appendix 2

49

22 Procedures for succession of a business (stock shares and

business assets) Individual procedures 46 0.9 95.7

23 Procedures for industrial safety Individual procedures 44 0.9 96.5

24 Procedures for ports and harbors Individual procedures 29 0.6 97.1

25 Procedures for safety and proper labeling of food,

housewares and other supplies Individual procedures 28 0.5 97.7

26 Procedures for permits and licenses required for other

business activities

Government-wide


27 Procedures for living environment Individual procedures 21 0.4 98.5

28 Procedures for other issues Other procedures 77 1.5 100.0

50

Prime Minister Abe’s statement in the Regulatory Reform Promotion Council

(March 29, 2017)

Prime Minister Shinzo Abe attended the 14th meeting of the Regulatory Reform Promotion Council

at the Prime Minister’s Office.

During the meeting, there was a discussion on reducing the costs of administrative procedures.

Based on the discussion, the Prime Minister said,

“Today we received strong requests directly from the leaders of the Three Economic Associations.

Taking into consideration these requests, the Government will work as one to jointly promote

regulatory reforms and the simplification of and greater use of IT in administrative procedures.

In regard to fields where there is a heavy burden on business operators, such as business permits and

approvals, we will strive to reduce administrative costs by at least 20% by 2020, when the Tokyo

Olympic and Paralympic Games will be held.

Furthermore, in regard to all fields, I have given thorough instructions that three principles will be

closely followed. First, we will make it possible to complete administrative procedures via solely

electronic means. Second, the same information will only need to be submitted once. Third, uniform

styles and formats will be used.

Appendix 3

51

I will instruct each ministry and agency to compile and publish a cost reduction plan by June. We

will review these plans in an open process in the Regulatory Reform Promotion Council, and oversee

their progress.

In addition, in regard to the procedures of regional public organizations, the reality is that, even when

they are procedures for the same purpose, the formats and styles often differ depending on the

municipality, and thus they require many hours to complete. I would like to request the cooperation

of regional public organizations for improving administrative procedures, in conjunction with the

measures carried out by the Government.

Through such measures, we will strongly support the improved productivity and work style reform of

companies in Japan. Thank you.”

52

Subcommittee for Administrative Burden Reduction

List of Committee Members and Expert Committee Members

Committee Members

Chair Shigeru Takahashi Professor, Faculty of Law, Hosei University

Vice-Chair Junji Annen Professor, Chuo Law School, Chuo University

Makiko Eda Chief Representative Officer, World Economic Forum in

Japan

Miho Nosaka Full-time Lecturer, School of Management and Information

Sciences, Tama University

Izumi Hayashi Attorney-at-law, Sakurazaka Law Offices Eiji Hara President, Public Policy Planning & Consulting Co.

Expert Committee Members

Sadakazu Osaki Head of Research, Nomura Research Institute, Ltd.

Junichi Kawada Director and Executive Vice President, JXTG Holdings,

Inc.

Jiro Kokuryo Vice-President, Keio University; Professor, Faculty of

Policy Management

Soichiro Sakuma Director, Member of the Board , Nippon Steel & Sumitomo

Metal Corporation Yoshihiro Tanaka Associate Professor, Faculty of Law, Niigata University Kanae Tsutsumi CEO, Career Mam Co., Ltd. Takao Hamanishi Professor, Faculty of Policy Management, Shobi University

Appendix 4

53

List of the First Review Team Committee Members/Expert Committee Members

Committee Members

Chief Shigeru Takahashi Professor, Faculty of Law, Hosei University

Makiko Eda Chief Representative Officer, World Economic Forum in

Japan

Eiji Hara President, Public Policy Planning & Consulting Co.


Sadakazu Osaki Head of Research, Nomura Research Institute, Ltd.

Junichi Kawada Director and Executive Vice President, JXTG Holdings, Inc.

Takao Hamanishi Professor, Faculty of Policy Management, Shobi University

List of the Second Review Team Committee Members/Expert Committee Members

Committee Members

Chief Junji Annen Professor, Chuo Law School, Chuo University

Miho Nosaka Full-time Lecturer, School of Management and Information

Sciences, Tama University

Izumi Hayashi Attorney-at-law, Sakurazaka Law Offices


Soichiro Sakuma Director, Member of the Board , Nippon Steel & Sumitomo

Metal Corporation

Yoshihiro Tanaka Associate Professor, Faculty of Law, Niigata University

Kanae Tsutsumi CEO, Career Mam Co., Ltd.

54

Past Discussions of the Subcommittee for Administrative Burden Reduction

1. Subcommittee for Administrative Burden Reduction

1st

meeting

Aug. 29,

2017

・Subcommittee procedures

・ Establishment of Review Teams for inspection of basic implementing plans

concerning prioritized areas

・Outline of basic implementing plans

2nd

meeting

Sep. 15,

2017

・Public hearing with organizations on basic implementing plans

Keidanren, Japan Association of Corporate Executives, Japan Association of New

Economy, The Japan Chamber of Commerce and Industry, Central Federation of

Societies of Commerce and Industry, National Federation of Small Business

Associations, and Japan Federation of Labor and Social Security Attorney's

Associations

3rd

meeting

Oct. 27,

2017

・Tottori Prefecture’s efforts for administrative cost reduction

4th

meeting

Nov. 20,

2017

・Simplification of identity verification procedures

5th

meeting

Dec. 22,

2017

・Simplification of procedures for submitting a bid to or entering into a contract with

an administrative ministry or agency

・Public hearings with relevant ministries and agencies (procedures for submitting a

bid to or entering into a contract)

Goods and services (MIC)

Construction works, surveys, etc. (MLIT)

・Preliminary screening of prospective bidders (goods and services) for independent

administrative agencies

6th

meeting

Jan. 31,

2018

・Simplification of administrative procedures for small and mid-sized enterprises

・Public hearings with relevant ministries and agencies

Digital Government Execution Plan (National Strategy Office of Information and

Communications Technology, Cabinet Secretariat)

7th

meeting

Mar. 9, 2018 ・Public hearings with relevant ministries and agencies (procedures for submitting a

bid to or entering into a contract)

Goods and services (MIC)

Construction works, surveys, etc. (MLIT)

・Other items to be confirmed

Appendix 5

55

2. First Review Team of the Subcommittee for Administrative Burden Reduction

1st

meeting

Sep. 21,

2017


Prioritized areas “Procedures for national taxes” and “Procedures for local taxes”

(MOF, MIC)

2nd

meeting

Oct. 5, 2017 ・Public hearings with relevant ministries and agencies

Prioritized area “Procedures for social insurance) (MHLW)

・Policy of revising basic implementing plans (procedures for business approvals and

licenses)

3rd

meeting

Nov. 2,

2017


Prioritized area “Procedures for social insurance) (MHLW)

・Collation of responses of ministries and agencies to the “Policy of revising basic

implementing plans (procedures for business approvals and licenses)”

4th

meeting

Jan. 18,

2018


Prioritized area “Procedures for business approvals and licenses”

(NPA, MAFF, MOE, METI)

5th

meeting

Feb. 1, 2018 ・Public hearings with relevant ministries and agencies


(FSA, MLIT, MHLW)

6th

meeting

Feb. 21,

2018


Prioritized area “Procedures for social insurance” (MHLW)

7th

meeting

Mar. 15,

2018



(MAFF, MLIT, MHLW)

8th meeting Mar. 27,

2018


Prioritized area “Procedures for business approvals and licenses” (METI, MOE)

56

3. Second Review Team of the Subcommittee for Administrative Burden Reduction

1st

meeting

Sep. 19,

2017


Prioritized area “Issuance of certificates as the request of corporate members”

(National Strategy Office of Information and Communications Technology of the

Cabinet Secretariat, Children And Child�Rearing Administration of the Cabinet

Office, MHLW)

Prioritized area “Procedures for labor management of corporate members”

(MHLW, MLIT)

2nd

meeting

Oct. 3, 2017 ・Prioritized area “Procedures for subsidies”

3rd

meeting

Oct. 20,

2017

・Prioritized area “Providing responses to statistical studies and other surveys”

4th

meeting

Nov. 30,

2017

・ Public hearings with relevant ministries and agencies (providing responses to

statistical studies and other surveys)

Consolidation/integration of similar statistics (National Personnel Authority “Survey

of Pay Rates in the Private Sector”, National Tax Administration Agency “Statistical

Survey of Actual Status for Salary in the Private Sector”, MHLW “Basic Survey on

Wage Structure”)

・Responses of ministries and agencies to the “Policy of revising basic implementing

plans” (providing responses to statistical studies and other surveys/procedures for

subsidies) and to public hearings with relevant ministries and agencies (employment

certificates, labor management)

5th

meeting

Feb. 15,

2018


Prioritized area “Commercial registrations” (MOJ)

6th

meeting

Feb. 20,

2018


Prioritized area “Providing responses to statistical studies and other surveys”

(Consolidation/integration of similar statistics)

(National Personnel Authority, MHLW)


Prioritized area “Issuance of certificates as the request of corporate members”

(National Strategy Office of Information and Communications Technology of the

Cabinet Secretariat, Children And Child�Rearing Administration of the Cabinet

Office, MHLW)

7th

meeting

Mar. 23,

2018


Prioritized area “Procedures for commercial registrations” (MOJ)

・ Prioritized area “Providing responses to statistical studies and other surveys”

(Consolidation/integration of similar statistics)

Documents

Basic Program on Reducing Administrative Burden: …...(accounting for annual 83.47 million cases)), ministries and agencies interviewed businesses on administrative costs (number